On Friday's CNBC's Options Action, the crew analyzed the performance of Facebook stock. Facebook ( FB ) has been one of the hottest stocks in 2017, part of the FANG group but has started to underperform it's peers over the past few months. Compared to Tech, Consumer Discretionary and even the S&P 500 , FB has severely underperformed all, which is a bearish sign. Coupled with a break below a bullish channel , points to possible weakness going forward. Expecting FBto have topped, Michael Khouw suggests selling an April 185/196 Call Vertical for a $3.80 Credit.

OMG that Amazon! Amazon is unsustainably growing. Never have seen anything like that growth!

It's been a series of steady growth triangles until recently. Now it's growth is much sharper and a correction is coming. Indicators show its overbought at the moment. There is also a bearish divergence between its recent upward trend yet the downward trend of volume . Recently, this surge of sharp growth appears to be in a Rising Wedge pattern which is typically bearish .

Much like the Amazon bubble of ~2000 when people overbought on hype on Amazon revolutionizing stores. Now it seems like people are overbuying due to hype of Amazon's new ideas and products in the modern economy. Day/week traders may find avenues to short it. But mid to long term holders are cautioned to wait.

Market wants social media stocks, Snapchat 's IPO made quite of a buzz. Twitter also managed to pull a surprise themselves with some excellent earnings previous years. With analysis ratings as high as 32, we might be very well on the way of recovery."